This listing includes AI condition scoring, neighbourhood intelligence, and market valuation data — giving you a complete picture before you visit. Compare rental yield, price per square metre, and location strength against the broader Portuguese market to assess whether this property fits your investment strategy.
4-bedroom, 3-bathroom house of 300 m², energy rating B. Located on urbanização de Gambelas S / N, Montenegro parish, Faro municipality, Faro district. This property boasts a spacious outdoor kitchen and two leisure areas with a pergola, providing perfect settings for relaxation and entertainment in the garden.
The valuation. The asking price sits at €852,500, significantly above the fair value of €560,821, indicating an overvaluation of €291,679 (34.2%). This property is, therefore, overpriced in the current market context.
Fair value modelled at €560,821 from the area baseline, adjusted for condition and location. Asking €852,500 sits €291,679 (34.2%) above — overpriced versus fair value.
Asking €852,500 versus the urbanização de Gambelas S / N area baseline of €1,068,900 (€3,563/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 74 · Materials 80 · Room dimensions 81). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
urbanização de Gambelas S / N
Area baseline €1,068,900 + condition +€16,875 + location +€28,846 = modelled fair value of €560,821 (€1,869/m²), a €291,679 (34.2%) gap versus the €852,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização de Gambelas S / N | Subject | €852,500 | €2,842 | — | 74 | 64 |
| Faro (Sé e São Pedro) · f3632c | Active | €920,000 | €3,098 | 9.0% | 79 | 60 |
| rua Doutor José Domingos Garcia Domingues | Active | €375,000 | €2,641 | 7.1% | 70 | 64 |
| Faro (Sé e São Pedro) · 4a7e4f | Active | €360,000 | €2,118 | 25.5% | 72 | 65 |
| rua Professor Doutor Reis Cunha, 9 | Active | €849,950 | €2,599 | 8.5% | 90 | 71 |
| Median comp | €612,475 | €2,620 | 7.8% | 76 | 65 |
Short-term vacation rental The property’s gross yield of 2.7% suggests that the income potential for short-term vacation rentals is limited, making it less attractive as an investment in this segment. Additionally, given that the property is overpriced by 34.2% relative to its fair value, it may struggle to generate sufficient returns in a competitive market. Buy-and-hold As a buy-and-hold investment, the property is not appealing due to its current valuation which exceeds the fair value by 34.2%, indicating a lack of immediate financial upside. The overall condition rating of 79/100 does support a long-term hold, but the high entry price could hinder achieving sustainable capital appreciation. Value-add renovation While renovation could potentially improve the property and its market position, the significant gap from fair value suggests that initial capital outlay will be high, especially at €852,500. Investing in value-add renovation may not recover its costs in the current pricing environment, which frames the property as overpriced with limited upside potential in the future.
Economic Vulnerability The property has a relatively low economic stability score of 60/100, indicating potential susceptibility to economic downturns affecting income and property value. Tenant Instability With a tenant stability score of 65/100, there is a notable risk of tenant turnover, which can lead to increased vacancy rates and decreased rental income.
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